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-- turning to Middle East oil now what -- the deadly attack at a natural gas plant in Algeria.
We'll have any impact at all in the oil industry as a whole joining me now with their expertise.
Yasser -- president of the American Islamic forum an oil expert Stephen short of the shark report gentlemen welcome back to the show.
We have she in -- related issues that I kind of want to tackle at the same time and you know you hear about this report out of Iraq it stumbled upon.
Another billion barrels of oil which is kind of what we always heard about Iraq there was all this oil there was so much fighting going on top -- -- -- we could just get there.
You know it's this treasure trove of the same -- you hear what's happening in Algeria.
And how dangerous it is it reminds you to get oil out of the ground in this area and I wonder if that signals a new war.
On oil assets -- -- zuni what do you think.
Well I do think the Algerian situation should signal that there's a vacuum in northern Africa.
Though the group that committed these atrocities where hailed jihadist from Libya from two and easier from Egypt and and from all over the place in the bottom line is is what's happening in -- is destabilizing the Mali government and now -- nearby regions are seeing that there's a North African movement of Islamism or islamists and they're seeing weakening governments.
And they're using economic interest and foreign nationals as weapons because the biggest threat to the jihadist movement.
Is western interest in the area that they can get us to pull -- get France and Europe to pull out.
Companies like this Algerian gas company that was working with -- British and working with the Norway stat oil.
If they can get -- to pull up they'll be more able to establish a foothold like they've done in Mallory.
And continued to spread into this vacuum that we have been completely missing -- and a.
Stephen I mean when you hear about the billion barrels in Iraq do you discount it because you hear about.
Attacks like this in Algeria and you realize again just how difficult that is to get this -- market.
Well indeed while the situation in -- Melissa is you know reminds us just how vulnerable the situation.
In North Africa is that he -- -- Two years ago with the Libyan civil war we had a significant amount of Libyan oil that went missing from the market.
-- was chiefly responsible for 35% rise in oil prices at the start of the summer.
Now the fact that gone back to Iraq that you've got a country with a 143.
Billion barrels of recoverable oil.
-- the fourth largest reserves in the world and that skip still can find another billion barrels out there -- again knocks out the lag from the myth of peak oil bottom line is prices are high enough that incentive is there to start looking for this stuff in we are.
Getting it out of the ground.
But whether -- be in Iraq Algeria Libya.
These are very vulnerable situation and this is why we should all hell the decision today to finally go through with the Keystone Pipeline.
Which again and will make the United States and North America less dependent on Canada on Iraq on Algeria for the oil and more dependent on the stuff that we can pull out of our own ground.
I mean you're talking about the governor of Nebraska coming out today and saying that he you know that he approves the new -- planned to go around the area that had been you know it it designated as a no go zone in Nebraska for the XL pipeline is still now up to the president to go ahead of previous plans we have a long way to go.
But as Judy let me kick -- back to you -- It seems like we have.
Maybe even less influence in the area that we ever did before if you look at the situation in Algeria and how we Europe basically locked out have having any influence.
On what went online you know once the situation blew up and there were Americans in the area.
Absolutely and and nature abhors a vacuum.
And in every part every country you see a vacuum happening.
And and fill that void is coming the islamists even this find of oil in Iraq it was near the Iranian border just to be a press TV the Iran -- Energy ministers saying oh this is shared reserves they want to move in.
That the context in Iraq is he Kurdish conflict -- where the Kurds have cut down their oil production from a 100000 barrels a day.
The 5000 because they don't want Baghdad to control it so Baghdad now says -- look we found oil and now we're not gonna be as dependent on the Kurdish region into this conflict.
America has been missing in action and Iran is gonna fill those -- if we stay asleep yeah political Islam and its interest.
And Stephen you make a great point that this means that we should be more dependent on -- -- than ever before that we need the pipeline.
But it also pushes the focus to fracking and -- shall.
I worry especially with the president's speech yesterday with the turnover that we're about to see the Department of Energy.
That maybe we're gonna see a crackdown on fracking and on shale here in the US that that really goes again.
Our own self interest.
Well it really -- -- where they would be a shock analysts say if the president did come out now especially after the governor.
Who by the way was against the XL pipeline before now he's -- because bottom line up -- still go and open -- these -- -- far just in a different region.
But at the end of data they realize how important this -- US crude oil production is up 25%.
Over the past five years yeah that is one point three.
Million barrels a day of oil that we are now producing that we do not have to import from -- guys.
From Nigeria from -- It will be especially if you look at of course with what's going on -- -- With the Kurdish situation in Iraq look what's going on with China and Japan they're fighting over a rock in the South China Sea.
All because of oil.
-- we do not exploit our own resources we are certainly -- net written shuttle setting ourselves up working while significant run up in price yeah.
All right gentlemen thanks so much.
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